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  Retired General Petraeus to chair KKR Middle East Jennifer Aguinaldo

  15 April 2025

  US-headquartered investment firm KKR has appointed retired US Army general David Petraeus as chairman of the firm's Middle East operations as part of its regional expansion plans.

  Petraeus, who is also a former Central Intelligence Agency director and US Central Commander, is a KKR partner.

  Julian Barratt-Due, a managing director at the firm, will lead KKR's dedicated investment team in the region.

  The firm said these appointments build on KKR’s "ongoing strategic commitment to the region, including having local offices since 2009 and deploying capital directly since 2019".

  KKR recently agreed to invest in the UAE-based Gulf Data Hub, an independent data centre platform, which operates seven data centres in the UAE and Saudi Arabia, and has plans to build additional data centre facilities in the rest of the GCC states, including Kuwait, Qatar, Bahrain and Oman.

  "Building on 16 years in the region, KKR has also strengthened and grown its global client solutions team based across KKR’s offices in the UAE and Saudi Arabia, with directors Patricia Bandeira Vieira and Michael de Freitas moving to the region last year to focus on strategic partnerships and client engagement across the Middle East," the firm said.

  In addition to the strategic partnership with Gulf Data Hub, KKR’s prior investments in the region include a strategic partnership with Abu Dhabi National Oil Company (Adnoc) in 2019 to create Adnoc Oil Pipelines, which marked the first midstream infrastructure collaboration between a global institutional investor and a national oil company in the Middle East.

  KKR also acquired a portfolio of commercial aircraft from Etihad Airways in 2020 through aircraft leasing investment platform Altitude Aircraft Leasing, which was established by KKR’s credit and infrastructure funds in 2018 to acquire aircraft serviced by Altavair.

  In January, Gulf Data Hub and KKR announced that funds affiliated with KKR will acquire a stake in the data centre operator.

  In a statement, KKR said the two firms "have committed to support over $5bn of total investment to grow GDH's market-leading position and to support its international growth plans through organic and inorganic strategies".

  The investment will require customary approvals and is being made through KKR's global infrastructure strategy.

  GDH said at the time that it aims to deliver the infrastructure required to meet hyperscale demand across the region to support increasing data consumption driven by the growing trends in digital connectivity, cloud and artificial intelligence (AI).

  Data centre construction boom

  The UAE, Saudi Arabia and Qatar, have a booming data centre market, thanks to their governments’ drive to set up regional AI hubs, increase digital adoption and improve efficiencies in line with their economic diversification agendas. 

  The Middle East data centre construction market is projected to reach $4.39bn by 2029, growing at a compound annual growth rate of 10.99%. 

  According to GlobalData, total investment in data centres globally reached $70.6bn in 2024 and is projected to grow by 5% to $74.3bn in 2025.

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  Jennifer Aguinaldo
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  UAE-Qatar causeway could face a geopolitical challenge Edward James

  15 April 2025

  Commentary
  Edward James 
  Head of content and analysis

  Register for MEED’s 14-day trial access 

  The news that early construction bids have been submitted for a new road causeway and ferry linking the UAE and Qatar could have a geopolitical impact in addition to potentially transforming transportation networks in the region. 

  The multibillion-dollar West Link project, tendered by the UAE’s Etihad Rail, will link the two states directly, enabling for the first time freight and car traffic to bypass the land connection in Saudi Arabia dividing them. 

  However, it could well provoke a diplomatic response from Riyadh if recent history is a guide.

  In 2006, Saudi Arabia protested and ultimately blocked the planned Dolphin Energy gas pipeline between Qatar and the UAE from passing what it claimed at the time was its territorial waters. In the end, the pipeline alignment had to be rerouted to avoid any potential encroachment. 

  Riyadh’s intervention made global headlines and came at a time of some tension between the kingdom and the UAE. The latter has never ratified the 1974 Treaty of Jeddah that formally disconnected the UAE’s land connection with Qatar. While there is general consensus on the land borders between Abu Dhabi and Riyadh, the offshore maritime border has never been delimited. 

  The Treaty of Jeddah stipulates that the two parties have joint sovereignty in the general maritime area between the two nations until formal demarcation could be agreed. It also gave the kingdom the right to construct ‘general installations’ on Al-Qaffay and Makasib islands, which lie within UAE territory, although it is not believed to have ever done so.

  More recently, last year Riyadh deposited a note verbale at the UN affirming its rejection of a 2019 UAE Amiri Decree that expanded the Yasat marine reserve to encompass Al-Qaffay Island, stating that the kingdom “does not recognise any actions or practices taken by the Government of the United Arab Emirates in the maritime area off the coast of Saudi Arabia, including the territorial sea of the Kingdom of Saudi Arabia, the joint sovereign area between the two countries and the islands of Makaseb and Qafai”.

  The new road causeway and ferry project will start on the UAE-Saudi border at Ras Ghumais and then run 40km in a northeast direction to Makasib, presumably also passing through Al-Qaffay. From there a ferry will take road traffic onto Qatar. 

  It is unclear what Riyadh’s position will be on the new connection, but given its diplomatic protest over the Yasat marine reserve, it is likely to want to have some say on its development. At the same time, it remains to be seen what impact the project will have on prospects for the long-planned GCC railway link between Saudi Arabia and the UAE, which has not seen much signs of progress despite the UAE side having completed its line to the Saudi border two years ago.

  Regardless, the project will be seen as another step in the closer integration of transport links in the GCC, offering an increasing number of options for traffic to flow between the economic bloc.

  ---

  READ THE APRIL 2025 MEED BUSINESS REVIEW – clck here to view PDF

  Regional construction heads underground; Riyadh reaps both diplomatic and economic success; Luxury GCC hospitality projects drive tourism

  Distributed to senior decision-makers in the region and around the world, the April 2025 edition of MEED Business Review includes:

  > AGENDA 1: Traffic drives construction underground > AGENDA 2: Muted public spending hinders global tunnelling > IRAQ: Chinese contractors to benefit from BP’s investment in Iraq > TOURISM 1: Beaches and luxury drive regional tourism > TOURISM 2: Region’s hotel projects pipeline balloons > EDMOND DE ROTHSCHILD: Investing in Saudi Arabia’s infrastructure opportunities > BAPCO: Securing Bahrain’s hydrocarbons potential > DATA CENTRES: GCC’s top five data centre projects > POWER: GCC battery storage pipeline hits over 55GWh > SAUDI PPPs: Rise in PPPs reflects Saudi budgetary pragmatism > SAUDI ARABIA REPORT: Riyadh enjoys buoyant fortunes > GULF PROJECTS INDEX: Gulf index sees minor correction > CONTRACT AWARDS: Project awards slump notably in February > ECONOMIC DATA: Data drives regional projects > OPINION:  Is this the end for Middle East studies?

  To see previous issues of MEED Business Review, please click here

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  Edward James
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  Kuwait firm bids low for Dubai substation works Jennifer Aguinaldo

  15 April 2025

  Kuwait-headquartered Imco Engineering & Construction (Imco) has submitted the lowest bid for a contract to build a new power transmission and distribution network project in Dubai.

  The firm submitted a bid of AED126.6m ($34.5m) for the contract to design, supply, install, test and commission a 132-kilovolt (kV) overhead line and cable works between the 400/132kV substation in Shams and the 132/33kV substation in Margham.

  The company's offer for the contract is 56% lower than the second-lowest bid, submitted by India's Kalpataru Projects at AED198.5m.

  India-based Dineshchandra Agarwal Infracon offered a base price of AED253.16m for the contract, plus two other options, priced at AED259.7m and AED286.9m, respectively.

  The local contracting firm, Centaur Electromechanical Contracting Company, offered to build the project for AED253.6m.

  State utility, Dubai Electricity & Water Authority (Dewa), tendered the contract in October last year, and received bids in February.

  In July last year, Dewa said it plans to tender 50 132-kilovolt (kV) substations over the next three years.

  Dubai has been ramping up renewable energy installed capacity in line with the energy diversification agendas of the emirate and the UAE.

  Increasing renewable energy's share of the electricity production mix will require a more robust power transmission network.

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  Jennifer Aguinaldo
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  US and Iran conclude indirect talks in Oman Jennifer Aguinaldo

  14 April 2025

  The first round of indirect nuclear talks between the US and Iran concluded on 12 April in Muscat, with the meeting described by both parties as "constructive".

  Iran's lead negotiator, Foreign Minister Abbas Araghchi, said the first meeting "was a constructive meeting held in a very peaceful and respectful environment, because no inappropriate language was used".

  According to the BBC, Araghchi's tone suggests the US team led by US President Donald Trump's envoy Steve Witkoff did not reiterate some of the president's threats that Iran would face "great danger" – implying possible military strikes – if this dialogue did not succeed. 

  MEED understands the two-and-a-half-hour meeting ran with the delegations in separate rooms, relaying messages through Oman's foreign minister, Badr bin Hamad Al-Busaidi.

  Witkoff, who is leading the US delegation, had previously only spoken of meeting face-to-face.

  It is understood that Araghchi and Witkoff did speak for a few minutes in the presence of Al-Busaidi, although no photographs were taken.

  Both parties confirmed a second round of talks will take place this week.

  The negotiations aim to revisit a potential nuclear deal that can satisfy both sides after Trump unilaterally withdrew in 2018 from the 2015 multilateral Joint Comprehensive Plan of Action (JCPOA) agreed upon by Iran and the P5+1 – the permanent UN Security Council members and Germany – and the EU.

  The JCPOA had restricted Tehran to enriching uranium to 3.67%, which is enough as fuel for a nuclear power plant but nothing more.

  Iran was also limited to no more than 300 kilograms of that uranium.

  Since the deal collapsed in 2018, however, Iran has enriched uranium to 60% and produced enough to allow for the development of at least one nuclear weapon.

  The US is now demanding the complete dismantling of Iran’s nuclear enrichment capabilities, and Trump has threatened military action if Iran fails to comply, while Iran has threatened to retaliate if attacked, raising the risk of potential conflict if talks fail.

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  Jennifer Aguinaldo
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  Dubai seeks Jebel Ali sewage legal advisers Jennifer Aguinaldo

  14 April 2025

  Dubai Municipality has invited firms to prequalify for a contract to provide legal advisory services for the procurement of the third phase of the extension of the Jebel Ali sewage treatment plant (STP) in the emirate.

  The prequalification request comes a little over one month after the client requested statements of qualifications for the project's financial advisory contract.

  The municipality expects to receive statements of qualifications for the legal advisory services contract by 30 April.

  Called DS150/3, the legal advisory project's period is expected to be 3 years.

  Phase three of the Jebel Ali STP extension will be procured as a public-private partnership (PPP) project, and the selected financial adviser will be working closely with the technical and other advisers appointed by Dubai Municipality to provide end-to-end advisory services on the procurement of a developer for the project.

  In October last year, Dubai Municipality sought engineering consultancy companies to prequalify for a contract to provide advisory services for phases one and two of the planned expansion of the Jebel Ali STP.

  $22bn PPP

  The expansion and upgrade of the Jebel Ali STP is one of the six packages comprising the $22bn Dubai Strategic Sewerage Tunnels (DSST) project, which is being procured using a PPP model.

  Another package comprises the rehabilitation and expansion of the existing Warsan STP, for which Dubai Municipality sought advisers in January 2024.

  The procurement processes for the two STP packages are being run separately from those for the four tunnels, links and terminal pump stations that make up the $22bn DSST project.

  MEED understands that the tenders for the Warsan and Jebel Ali STP packages are expected to be issued once the DSST project's first four components get under way.

  Under the current plan, the DSST project is broken down into six packages, which will be tendered as PPP packages with concession periods lasting between 25 and 35 years.

  The first package, J1, comprises Jebel Ali tunnels (North) and terminal pump stations (TPS). The tunnels will extend approximately 42 kilometres (km), and the links will extend 10km. 

  The second package, J2, covers the southern section of the Jebel Ali tunnels, which will extend 16km and have a link stretching 46km.

  W for Warsan, the third package, comprises 16km of tunnels, TPS and 46km of links.

  J3, the fourth package, comprises 129km of links.

  J1, J2, W and J3 will comprise the deep sewerage tunnels, links and TPS (TLT) components of the overall project.

  J1, J2 and W will be procured under a design-build-finance-operate-maintain model with a concession period of 25-35 years.

  J3 will be procured under a design-build-finance model with a concession period of 25-35 years. Once completed, Dubai Municipality will operate J3, unlike the first three packages, which are planned to be operated and maintained by the winning PPP contractors.  

  The municipality recently tendered the contracts to develop the DSST's J1 and W contracts, with bids due on 30 September.

   

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  Jennifer Aguinaldo